SHORT SELLERS AND THOSE IN FORECLOSURE ARE NOT THE SAME!!
For some
time now, many short sellers were treated the same as homeowners that foreclosed
when applying for a mortgage. Due to a credit coding issue that lumped
short sellers into the same category as a foreclosure, the waiting period for
loan approval was extended substantially. This forced millions to put
their dream of participating in homeownership again off to the distant
future. With interest rates climbing, and the real estate market
improving, the increased future cost for purchasing would seem more of an
obstacle down the road.
But new
policy changes could bring more options starting in November. After Sen.
Bill Nelson focused on bringing this coding error to the FTC and the Consumer
Financial Protection Board, things started to change. "This is the nature of the evolution of this business," says Fannie Mae spokeswoman Keosha Burns. The agency will input the new software into its computer system on Nov. 16. After that, if a short sale is marked as a foreclosure, the new code will allow the loan servicers to bypass it, correct it and move forward with the loan. Short sellers should speak with their bankers about the new options for homeownership, what the qualifications will be, and whether the state of their credit needs improvement.
More then ever, in today’s market it is extremely important to have an informed, Savvy REALTOR who knows and understand this market.
- Contact me - (click below)
Theodore “Ted” Corbett when BUYING a Home or SELLING your Home!
